Correlation Between Lenovo Group and BOS BETTER
Can any of the company-specific risk be diversified away by investing in both Lenovo Group and BOS BETTER at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lenovo Group and BOS BETTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lenovo Group Limited and BOS BETTER ONLINE, you can compare the effects of market volatilities on Lenovo Group and BOS BETTER and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lenovo Group with a short position of BOS BETTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenovo Group and BOS BETTER.
Diversification Opportunities for Lenovo Group and BOS BETTER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lenovo and BOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lenovo Group Limited and BOS BETTER ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS BETTER ONLINE and Lenovo Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lenovo Group Limited are associated (or correlated) with BOS BETTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS BETTER ONLINE has no effect on the direction of Lenovo Group i.e., Lenovo Group and BOS BETTER go up and down completely randomly.
Pair Corralation between Lenovo Group and BOS BETTER
If you would invest 236.00 in BOS BETTER ONLINE on September 12, 2024 and sell it today you would earn a total of 0.00 from holding BOS BETTER ONLINE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lenovo Group Limited vs. BOS BETTER ONLINE
Performance |
| Timeline |
| Lenovo Group Limited |
| BOS BETTER ONLINE |
Lenovo Group and BOS BETTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenovo Group and BOS BETTER
The main advantage of trading using opposite Lenovo Group and BOS BETTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenovo Group position performs unexpectedly, BOS BETTER can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BOS BETTER will offset losses from the drop in BOS BETTER's long position.| Lenovo Group vs. LIFEWAY FOODS | Lenovo Group vs. PACIFIC ONLINE | Lenovo Group vs. Ebro Foods SA | Lenovo Group vs. United Natural Foods |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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